Based on conventional economics, pricing isdecided by demand and supply.
If supply is constant, but demand increases, prices increases. If demand drops, so does prices.
if we look at this theory, as long as Bitcoin quantity is lesser and lesser, by right Bitcoinwill continue raising. Btw, even the limited supply of Bitcoin, is manufactured scarcity.
Self imposed scarcity.
However, the more important question will
be, can the demand for Bitcoin increase
forever?
Is there even a real demand for Bitcoin for
practical reasons?
The only demand that I can see so far, is
that someone will pay higher to buy from me. Is this real demand or is this pure speculation? If it's speculation, will the bubble pop
People say that Bitcoin is a currency? Is it
legal tender then? It's not. Stable economies
won't use it, as it will destabilise thE
economy. The country will lose control over
its currency. In fact, countries will want to regulateor even ban its usage.
What about using Bitcoin as a form of exchange? How do We even use something that value changes every few minutes to buy a Big Mac from MacDonald's.
Use as a hedge? Does Bitcoin behave like gold? In times of problems, it goes up when stock market crashes? there are no signs that Bitcoin can hedge against market crashes,in fact, it may fall faster than market crashes.
Use against inflation? If Bitcoin hedges against inflation, shouldn't be value continue to go up in times of high inflation? Y is it falling?
If there are no real world uses for Bitcoin,
then what's the real value for Bitcoin?
The limited supply is fabricated by its system.
The demand is created by people who is
looking for the next person to offload it to.
The feeling is like a dog chasing after it's own tail.
If supply shortage is fabricated, and demand is an illusion, then what is Bitcoin's actual worth?
Frankly, I dun care. There are so many otherways to invest with much lesser risk.
Last time I want, is to be stuck in a game ofpassing the bomb, and see who is the last man standing.
In summary, the price where I will buy Bitcoin $0.
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Good stuff!
Interesting take